Universal Life Insurance

If you are looking for flexibility and guaranteed lifetime protection to help meet your needs, universal life insurance may be for you. This coverage allows you to build your policy’s cash value or focus more on guaranteed protection.

Universal life insurance earns a fixed interest rate on the cash value in the policy. While the interest rate may change over time, it will never dip below a guaranteed minimum rate.

Universal Life Insurance premiums are paid into your policy’s account value (after a premium expense charge), where it earns interest. Every month, various deductions, such as a charge for insurance protection, are then made from the account value. You have the ability to take loans or make withdrawals from the account value for your personal needs. Loans accrue interest and unpaid loans plus interest and withdrawals will reduce the death benefit and cash value. The policy continues as long as the cash value is sufficient to cover the various deductions each month.

If all this sounds confusing, that’s because it is. At the end of the day, the major advantage of universal life is flexibility: you can change the protection level of the policy (within bounds) and you control the amount of frequency of payments (again, within bounds).

This life insurance offers protection for your family and strategies for leaving a legacy to them. If you would like to talk about how to make it work for you, call us. We’ll guide you through.